Dubai: After a very volatile month of August, Abu Dhabi and Dubai indices fell more than 2 per cent weighed by weak leads from overseas market along with falling oil prices.
The Dubai Financial Market General Index closed 2.13 per cent lower at 3,584.59, after losing more than 12.5 per cent in August.
“The market fell because of mostly international sentiment. As long we see further downside internationally and weaker global economy outlook, we could see further downside,” said Marwan Shurrab, fund manager and head of trading at Vision Investments & Holdings.
Damac Properties closed 2.62 per cent lower at Dh3.34, while Emaar Properties closed 3.41 per cent lower at Dh6.52. Gulf Finance House ended 5.17 per cent lower at Dh0.550. Amlak Finance closed 6.13 per cent lower at Dh1.99. Out of a total of 34 stocks traded on the exchange, shares of 27 firms fell, while shares of 3 firms rose.
Limited downside
“However, the downside could be limited as most valuations are considerably oversold and there are a lot of opportunities to participate in,” Shurrab said.
“The most important thing is going to be liquidity and with it coming back, it can come back, stability would come back to the market,” Shurrab added.
On Tuesday, Dubai bourse recorded volume of Dh462 million compared to more than Dh1 billion a few months ago.
Market has been very volatile even as it entered the bear market terittory at one point due to fears of slowdown in China, and falling oil prices.
In Abu Dhabi, the general index closed 2.64 per cent lower at 4,375.24. “Our focus remains to be directed on the bearish side after we witnessed an aggressive breach of the 4,500 reaching near the 4,000 area where
the index is consolidating in preparation of its next directional move,” MENACORP said in a note to its clients.
Dana Gas ended 1.85 per cent lower at Dh0.53, while Aldar Properties closed more than 4.5 per cent lower at Dh2.22.
Abu Dhabi Commercial Bank ended 3 per cent lower at Dh7.76.
Out of a total of 26 stocks traded on the exchange, shares of 20 firms fell, while shares of 2 other firms rose.
Saudi’s Tadawul index was 0.44 per cent lower at 7,489.56.
Elsewhere in the Gulf, Qatar Exchange index closed 1.28 per cent lower at 11,415.09, while Muscat Securities MSM 30 index fell 1.41 per cent to be at 5,804.81.
Bahrain bourse index closed 0.02 per cent lower at 1,299.01, while Kuwait index closed 0.39 per cent lower at 5,797.77.
